Finance redefined: The DeFi market fell off the cliff in the second quarter, but there is hope

Analytical data reveals that DeFi's total value locked saw a slight decline from last week, falling to a value of 56 .45 billion dollars.

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Welcome to Finance Redefined, your weekly dose of key decentralized finance (DeFi) news, a newsletter designed to bring you some of the major developments of the past week.

Last week saw several new developments in the DeFi ecosystem despite a bearish phase caused by the lending crisis in the crypto market. Another crypto lender, Celsius, with high stakes in DeFi protocols, has filed for bankruptcy. The overall DeFi market fell to new lows in the second quarter. However, a new report indicates that users haven't given up hope.

BNB Chain has launched a new decentralized application platform (DApp) with an alarm function. The Vermont state regulator has opened an investigation into troubled crypto lender Celsius, deeming it deeply insolvent. A DeFi researcher has predicted that Ethereum proof-of-stake (PoS) can help Ether (ETH) overtake Bitcoin (BTC).

DeFi tokens have seen further bullish momentum over the past couple of days on green market-wide momentum following the release of inflation data.

DeFi market fell off cliff in Q2, but users haven't given up hope: report

Although the DeFi market suffered a 74.6% drop in market capitalization in the second quarter, user activity remained relatively resilient, according to CoinGecko.

In a report by crypto data aggregator on Wednesday, CoinGecko reported that DeFi's overall market capitalization fell from $142 million to $36 million during the second quarter, mainly due to the collapse of Terra and its stablecoin TerraUSD Classic (USTC) in May.